The downtrend in the import billet market in Southeast Asia has resumed after the very short rebound in offers seen last week. The still bearish moods in China and continued weakness in demand have been putting pressure on prices.
The leading Indonesian mill has cut its offer prices for 5SP billet to $510/mt FOB, down from $520-530/mt FOB last week. And at least one deal has been signed to a trader who needed to cover its position.
At the same time, the latest offers from traders for ex-ASEAN billet have been reported to the Philippines at $528-530/mt CFR, while last week the lowest offers from traders were at $535/mt CFR. A rumor about a deal at $525-528/mt CFR has been circulating in the market, but it has not been confirmed by the time of publication, with most sources saying that demand has remained extremely weak in the Philippines. Offers for IF billets have been at $520/mt CFR, down $5/mt over the past week, but bids are closer to $500/mt CFR.
The SteelOrbis reference price for imported billet in Southeast Asia has slipped from $535-540/mt CFR last week to $525-535/mt CFR.
Ex-China billet prices have remained at $520-530/mt FOB, but the market mood has worsened again with weak real estate and PMI data. Average local billet prices in China have lost RMB 30/mt ($4/mt) over the past week to RMB 3,505/mt ex-warehouse. The level translates to $445/mt, excluding 13 percent VAT.